Solana is weighing a radical shift in its economic model that would eliminate approximately 22.3 million SOL ($2.9 billion) from projected emissions over the next six years.
As a result, the proposal would aggressively fast-track the transition of the blockchain to a low-inflation environment.
Solana’s Plan to Tighten Supply Risks Squeezing Nearly 50 Validators
The measure, formally titled SIMD-0411, proposes doubling the Solana network’s annual disinflation rate from 15% to 30%.
“Doubling the disinflation rate requires modifying a single parameter, making it the simplest possible protocol change that delivers a meaningful reduction in inflation. This adjustment will not consume core developer resources. It carries minimal risk of introducing bugs or unforeseen edge cases,” the authors argued.
If passed, Solana would hit its “terminal” inflation target of 1.5% in roughly three years, ie, by 2029. Notably, that milestone was originally scheduled for 2032.
Proponents describe the current emissions schedule as a “leaky bucket” that continually dilutes holders and creates persistent sell pressure.
By tightening supply, the network hopes to emulate the scarcity mechanics that have historically benefited Bitcoin and Ethereum.
“Our modeling indicates that, over the next 6 years, total supply would be approximately 3.2% lower (a reduction of 22.3 million SOL) than under the current inflation schedule. At today’s SOL price, this equates to roughly $2.9 billion in reduced emissions. Excessive emissions create persistent downward price pressure, distorting market signals and hindering fair price comparison,” they wrote.
Solana’s Disinflation Proposal. Source: Solana Floor
Beyond price support, the plan seeks to overhaul the incentive structure for decentralized finance (DeFi).
Moreover, the proposal argues that high inflation mirrors high interest rates in traditional finance, raising the “risk-free” benchmark and discouraging borrowing.
Considering this, Solana aims to push capital out of passive validation and into active liquidity provision by compressing nominal staking yields. Those yields are projected to fall from 6.41% to 2.42% by the third year.
<img alt="Solana Considers Cutting billion in SOL Emissions in its Biggest Economic Shift Yet" title="Solana Considers Cutting billion in SOL Emissions in its Biggest Economic Shift Yet" s Staking Reward and Inflation Rate." style="width:1024px;height:auto" src="/d/file/articles/uploads/2025-11-22/xy4glvzwd3q_19605.png">Solana’s Staking Reward and Inflation Rate. Source: Staking Rewards
However, this “hard money” pivot carries operational risks.
The reduction in subsidies will inevitably squeeze validator margins.
The proposal estimates that up to 47 validators could become unprofitable within three years as rewards dry up. However, the authors describe this level of churn as minimal.
Still, it raises questions about whether the network will consolidate around larger, better-capitalized operators that can survive on transaction fees alone.
Despite these concerns, early backing from key ecosystem players suggests Solana is prepared to trade subsidized growth for greater stability. The shift reflects a move toward positioning the network as a more mature, scarcity-driven asset class.
